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Competition increases in Chinese e-commerce market

Anuradha Shukla | March 21, 2014
More players with increase in the number of mobile Internet users and mobile e-commerce transactions.

Mobile e-commerce will be the focus of competition in Chinese e-commerce market in 2014, according to IDC's Top 10 Predictions for Chinese Internet industry.

This increase in competition is due to growth in the number of mobile Internet users and mobile e-commerce transactions.  

The scale of Chinese mobile e-commerce market is predicted to reach RMB 155.22 billion (US$ 24.976b) in 2014. This represents an increase of 67.9% compared to 2013 and exceeds the 28% average growth of Internet retail market for the same period.

China's Mobile e-commerce took an upward turn last year when its "Double Eleven" online shopping festival became a huge success amongst consumers who used mobile phones and tablet PCs called as mobile client terminals to make buy products. 

"The development of mobile e-commerce market will not be a simple migration from PCs to mobile terminals; it will be an individual-consumer-centric reconstruction of industrial models," said Jialin Jiang, senior market analyst, Vertical Industry Research and Consulting of IDC China.

Themes for mobile e-commerce

Promotion of mobile e-commerce client terminals is amongst three main development themes for mobile e-commerce in 2014.

For instance, Taobao, a website for online shopping in Chinese language, and other e-commerce platforms intend to promote the use of mobile client terminals by increasing subsidies.

The other two themes are competition for social mobile-Internet portals and new business model exploration; and mobile terminal membership marketing and management by brand vendors.

Looking forward, brand vendors will pay closer attention to collection and in-depth analysis of customer information to improve customer relationship management and bring down cost involved in purchasing channels.

"In sum, the current oligopolistic market landscape of e-commerce market will be eventually changed as a result of rising competition in mobile e-commerce market," added Jiang. "A new revolution of China E-commerce market is coming."



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